Cheapest way to buy Satrix

Pam asks: I recently became a grandmother and want to buy into the Satrix 40 or Satrix Divi or Satrix Rafi for my grandchild each month.

I can spend between R250 and R300 per month. What is the cheapest way to do this? What Satrix investment did you buy for your child?

I trade a bit online through FNB but found buying Satrix through them expensive.

Maya replies: If you are looking to invest monthly then buying Satrix through the Satrix investment plan is the cheapest option and the minimum debit order is R300. (www.satrix.co.za

Cost-wise, buying Satrix through a stockbroker only makes sense if you are investing R3 000 or more because of the minimum trade costs, which are about R50, and there are also annual brokerage fees. Even FNB, which is one of the most cost-effective, charges R17 a month (R204 a year), which would work out at 6% in the first year.

Personally I initially invested in Satrix 40 for my children but once Satrix Rafi was launched I switched them across. I like the Rafi index because it can outperform the JSE All Share index as it invests based on valuation and not company size.

For readers who want to invest R500 or more a month in the Rafi index, the Old Mutual Rafi 40 tracker fund is actually slightly cheaper than Satrix as it has a lower annual fee. If you invest less than R500 then there is an upfront administration charge of 2,25%, which works out higher than Satrix’s debit order fee of R3,50.

Read more news, blogs, tips and Q&As in our Smart Money section. Post questions on the site for independent and researched information.

Maya Fisher French
Guest Author
Advertisting

Stay in China, government tells homesick South Africans

As ‘impisoned’ children at epicentre cry to be reunited with their parents, top official says families mustn’t be ungrateful

Cradock Four back to haunt De Klerk

Pressure is mounting on the NPA to charge the former president and others involved in political killings during apartheid

Ramaphosa makes peace with Malema over gender-based violence comments

In his Sona response, the president apologised for the weaponising of gender-based violence, saying the attack on the red beret leader was "uncalled for"

Steenhuisen takes the lead in DA race while Ntuli falters

‘If you want a guarantee buy a toaster. This is politics’
Advertising

Press Releases

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.

NWU student receives international award

Carol-Mari Schulz received the Bachelor of Health Sciences in Occupational Hygiene Top Achiever Award.

Academic programme resumes at all campuses

Lectures, practicals, seminars and tutorials will all resume today as per specific academic timetables.

Strategic social investments are a catalyst for social progress

Barloworld Mbewu enables beneficiaries to move away from dependence on grant funding

We all have a part to play to make South Africa work

Powering societal progress demands partnerships between all stakeholders

So you want to be a social entrepreneur?

Do the research first; it will save money and time later

Social entrepreneurship means business

Enterprises with a cause at their core might be exactly what our economy desperately needs

Looking inwards

Businesses are finding tangible ways to give back – but only because consumers demand it